Category: Commercial Real Estate

The combination of job growth and the surge in GDP during the long-running economic recovery has been a boon to the commercial real estate sector.

In Atlanta and across the country, there has been continued strong demand and absorption for virtually all product types, and capital has been readily available for investment.

But will the good times continue? What next?

That was the focus of Ackerman & Co.’s recently held 12th Annual Investor Conference, attended by some 150 guests, including owners, operators, investors and brokers.

Host Kris Miller and keynote speaker David Haddow weighed in with their perspective on current economic trends and their outlook for the commercial real estate sector. Joining them with in-depth discussions of investment opportunities for specific product types were F. Keene Miller (Brokerage), Leo Wiener (Retail), Brett Buckner (Industrial) and Evan Ziegler (Investments).

“After the last two years of success, growth and prosperity, the numbers would suggest that the future of commercial real estate has never been brighter. Yet each of us feels less certain than we did two years ago. Why? Is that how we should feel?” asked Kris Miller.

There are causes for concern, said David Haddow. Current economic soft spots, he said, include the rising national debt (now at $21.6 trillion, an increase of $10 trillion since 2008), government gridlock, fast-rising home prices and diminishing consumer confidence. Combined with those issues, the length of the current cycle (nearly 10 years) makes an economic correction more likely in the next 24 months, Kris added.

How should investors respond? Here are the three biggest takeaways provided by Kris and his Ackerman & Co. colleagues:

Stay on the field.

Focus on the specific strengths and weaknesses of each deal – rather than macro conditions across property types or markets.

Adopt a bias toward selling.

The annual conference also provided guests an opportunity to learn about Ackerman & Co.’s 2018 business highlights as well as its goals for the coming year.

Last year’s highlights included Ackerman’s $70-million sale of Braselton Logistics Center to Uline Inc.; the $9.75-million acquisition of the four-building Warren Drive industrial portfolio in Atlanta; the completion of the 181-key Crowne Plaza Hotel in North Augusta; and the $15-million disposition of seven industrial buildings at Stone Mountain Industrial Park, to name a few.

Kris and the team thank everyone for attending despite the rare winter-weather advisory in Atlanta!

The game will be viewed by 150-million-plus people worldwide and the full slate of events held across the city of Atlanta during Super Bowl week will pour an estimated $185 million into local hotels, restaurants, retailers and other businesses.

But the impact of this stadium – praised as “one of the most beautifully designed stadiums on the planet” by Architectural Digest – will extend far beyond the Super Bowl and other games, concerts and events held there.

Arthur Blank, owner the Atlanta Falcons and Atlanta United, has stated: “the city is on fire” economically, and his goal is for the stadium to help Westside communities around the stadium share in that success.

Here’s a rundown of some of the key developments and initiatives taking shape near the stadium:

John F. Kennedy Park just west of the stadium is undergoing a $2-million renovation as part of the Atlanta Super Bowl Host Committee’s Legacy 53 initiative to create a lasting impact beyond the game itself. The improvements will include an artificial turf playing field, a community walking path, new playground equipment and a basketball court.

The Home Depot Backyard, 11-acres of multi-use greenspace created on the site of the former Georgia Dome, serves as a large tailgating space on game days and a community park the rest of the year. The “backyard” offers a destination playground, a 3-tier pavilion, and a large central lawn for soccer games, movie nights, farmers markets and more.

A 1,000-room Signia Hilton, a new upscale hotel brand from Hilton Worldwide, will serve the adjacent Georgia World Congress Center and a growing entertainment district in the area that includes Mercedes-Benz Stadium.

Rodney Cook Sr. Park, a new $45-million, 16-acre park under development in the Vine City neighborhood, will feature a great lawn, public performance space and 18 monuments to civil rights and community leaders.

Westside Works is a long-term initiative focused on creating employment opportunities for residents of Westside communities and provides access to skills training, job readiness programs and more.

Reverb by Hard Rock, an 11-floor boutique a few blocks south of the stadium, will feature 200 rooms and a rooftop bar. Expected to open in 2020, the hotel is a new spinoff of the Hard Rock Hotel brand.

The 104-key Clarion Inn & Suites, completed in spring 2018 and situated in walking distance to the stadium, marked the first hotel opening in years on Atlanta’s Westside.

We are excited to announce the opening of a new restaurant in South Atlanta. Bryan Davis, vice president of retail services for Ackerman Retail, recently represented Gocha Hawkins in leasing space for her new fast-casual restaurant-concept, Gocha’s Breakfast Bar.

Gocha Hawkins is a salon owner and award-winning hairstylist to a number of TV and music personalities including famed Real Housewives of Atlanta. Her new 2,000-square-foot restaurant offers a contemporary twist to Southern classics for breakfast and lunch. It’s located at the Cascade Crossing Shopping Center off of Cascade Road. The restaurant opened its doors earlier this month, for both breakfast and lunch.

“It was a pleasure to help my client realize a dream of opening her first restaurant. This new entry to the dining scene complements the existing development growth in the Cascade area of South Atlanta,” said Bryan.

Please don’t hesitate to reach out to Bryan for all your restaurant and real estate entertainment needs.

How can we help?

Ackerman & Co. wants to know what you need with regard to managing your properties. The answer helps us build our plan of attack—choosing from our arsenal of experts and services to find the best solution for your real estate investment. Property management can make or break a real estate venture. Good management can increase value and reduce property costs. Bad management can mean money lost and headaches acquired.

Ackerman & Co. is a property partner you can trust to help you—and your investment—find success.

Property Manager Amanda Wyatt is a 15-year veteran in Ackerman’s Property Management division. We recently caught up with Amanda to get a close-in look at her role in the department. In addition to providing perspective on her approach to her work, she discussed what she enjoys doing in her free time – and even her top “bucket list” item!

Q: Can you tell us a little about what you do in the Property Management group?

A: I manage multiple properties in the metro Atlanta area. My team and I support the owners, assist the tenants at each of the properties, provide financial reporting and oversee daily operations.

Q: For people who aren’t familiar with property management, can you provide a rundown of the core services the Ackerman & Co. property management group provides?

Q: What advice do you have for someone trying to break into your field?

A: The advice I would give is to be patient, breathe and don’t be afraid to ask questions.

Q: What are some of the most gratifying aspects of your work?

A: The camaraderie of my team! It makes it easy to come to work every day knowing that I have a great team of professionals around me.

Q: How would you describe yourself?

A: I am seriously funny, always have a smile on my face. I love to laugh and love a good joke. Life is too short, so my outlook is to make the best of it and have a good time.

Kelly, one of the top retail brokers in metro Atlanta, recently joined Ackerman Retail as a senior vice president. She will focus on third-party leasing as part of a Landlord Representation team that includes Executive Vice President Courtney Brumbelow.

“Kelly brings a unique mix of expertise, including landlord and tenant representation in combination with her experience in restaurant ownership and franchise development,” said Leo Wiener, president of Ackerman Retail. “We’re thrilled to add Kelly to our team.”

This experience expanded Kelly’s involvement in commercial real estate and site selection, ultimately leading to her current focus – retail leasing.

Most recently, she launched the third-party landlord representation platform at The Windsor Realty Group.

Among her current exclusive leasing assignments is Marietta Square Market Food Hall – which she has 100% pre-leased. The highly anticipated food hall is scheduled to open in early 2019.

Kelly’s talents extend beyond commercial real estate.

Her extensive musical theatre resume includes performances in touring Broadway plays such as South Pacific (with Robert Goulet), Theater of the Stars at The Fox Theatre and 1940’s Radio Hour at Theatre in the Square in Marietta, Ga.

Kelly has also been the lead singer in a variety of country and rock ‘n roll cover bands, singing songs by the likes of Journey and Melissa Etheridge.

For nearly a decade, Gina DeRaffele has been one of our top brokers at Ackerman & Co.

Specializing in office properties, she takes pride in developing strong relationships with her clients to gain a clear understanding of their long-term real estate needs. This approach enables Gina to consistently close the most advantageous leases on behalf of her clients at the most competitive rates.

This year is holding true to form for Gina – once again, she has completed several high-profile office leases in the Atlanta market.

Thanks to that success, she was recently named Ackerman’s Broker of the Month.

One of her major transactions this year is a five-year lease extension and expansion on behalf of GoHealth Urgent Care. The 17,621 SF lease extension and 10,194 SF expansion will increase the healthcare provider’s headquarters space at Glenridge Highlands One in Sandy Springs to a total of 27,815 SF.

“It’s really a pleasure to be able to establish lasting relationships like this and help provide a solution that accommodates their ongoing growth,” Gina said. “It’s one of the most gratifying aspects of working in this industry.”

Since 2000, Gina has completed nearly 200 transactions totaling approximately 3.5 million square feet, and she’s consistently been recognized for her transaction volume and client service.

The Land Group, a brokerage team made up of land experts from Ackerman & Co. and the Pioneer Land Group, has represented owners in land sales that have paved the way for many noteworthy housing and commercial real estate developments across the Southeast.

The Group’s $300+ million in transactions is a direct result of their expertise in:

Carrying out a creative marketing strategy

Addressing key site challenges needed to close transactions and maximize land value

The end result is a consistent track record of completing a high percentage of sales above the asking price for land owners.

Now let’s introduce you to the team that’s been so successful completing these deals:

John Speros, senior vice president of brokerage and leader of the Ackerman Land Group. With nearly 30 years of commercial real estate experience, John focuses on high-profile land parcels in major growth corridors of Atlanta and the Southeast. He has been honored twice with the Alvin B. Cates Award for the most significant and outstanding commercial real estate transaction in Atlanta.

John Thomas Speros (JT) – JT provides expertise needed to complete land deals, including analysis, underwriting, research and an in-depth understanding of current supply and demand factors.

Kyle Grable – Kyle, an experienced land broker at the Pioneer Land Group, is a valued partner with extensive experience completing sales and acquisitions. He provides clients crucial information on the many variables that impact the viability of a parcel of land targeted for development.

The complementary skills of the team enables them to succeed at their core mission: to maximize pricing for clients.

Next up – we’ll detail some of the Land Group’s biggest and most influential transactions!

Now more than ever, retailers are locating distribution centers as close as possible to the urban cores of major cities.

It’s the reason that e-commerce giant Amazon – which is now offering product deliveries in under two hours – operates three distribution centers in metro Atlanta, the 9th largest metro area in the U.S.

Amazon’s current metro Atlanta distribution facilities are located in Braselton, Lithia Springs and Union City, and the company is reportedly scouting a fourth location in Stone Mountain, approximately 20 miles east of downtown Atlanta.

With the site’s proximity to a large portion of its Atlanta customer base, the Stone Mountain location would no doubt support Amazon’s increasingly speedy delivery goals. The project would also be a rarity in Atlanta – a multi-story distribution facility. By building up, Amazon would be able to pack more square footage per acre.

In addition to developing major projects such as Braselton Logistics Center Phases I and II in outlying submarkets that offer crucial interstate access, Ackerman is focused on strategic investments in locations near the city’s fast-growing “intown” submarkets.

A prime example is Ackerman’s biggest acquisition to date – Stone Mountain Industrial Park, a 4.1-million-square-foot business park offering distributors a wide-ranging mix of shallow-bay space. More recently, Ackerman acquired LaVista Business Park, a 4-building, 217,089-square-foot business center also located in the Stone Mountain industrial submarket. Both business parks offer quick access to I-285 and the rest of Atlanta’s extensive interstate network.

Like us, Amazon and other retailers know the value of close-in locations that provide quick access to Atlanta’s growing population and the opportunity for last-mile distribution to customers.

SunTrust Park in Atlanta isn’t the only new ballpark in Georgia serving as a catalyst for economic development.

About 140 miles east of Atlanta, the first baseball game was recently played at SRP Park, the new home of the Augusta GreenJackets minor league team.

Like SunTrust Park – which is surrounded by the mixed-use Battery Atlanta – the 4,200-steat SRP Park is part of an ambitious multi-use development, Riverside Village. Dubbed a “live-work-play destination,” the project is bringing a total of $200 million in new development to North Augusta, S.C., across the Savannah River from downtown Augusta. Ga.

Crowne Plaza Riverside Village, located next to the new baseball stadium, is one of the key components of the project. A development partnership between Ackerman & Co. and Greenstone Properties, the 180-key hotel is slated to open in January 2019 and will feature a rooftop bar, a conference center, a restaurant and ballroom.

The project is part of Ackerman’s ongoing strategic investment in cities beyond its core market of Atlanta.

“It’s exciting to participate in a project like this that is helping to spur tourism and expand the business base of metro Augusta,” said Kris Miller.In addition to boosting tourism, Riverside Village aims to attract long-term residents with Ironwood Apartments (a 300-unit Class A apartment building) as well as single-family homes, condominiums and senior living residences.

Riverside Village will also include a vibrant town center, high-quality office space, wide-ranging dining options, and premier national and local retailers.

SRP Park has been packed with large crowds since its opening, and the completion of other projects are sure to generate even greater economic benefits for metro Augusta.

Noted an editorial in The North Augusta Star newspaper, “The ballpark and surrounding Riverside Village development can best be summed up as a symbol of North Augusta taking the next step as a city and must-stop destination for visitors.”

About Ackerman & Co.

Ackerman & Co. is one of the top commercial real estate companies in the Southeast with more than 35 million square feet of office, medical, retail and mixed-used space developed, nearly 8 million square feet more under management, an investment portfolio valued at more than $1 billion and a widespread presence that leverages the experience of more than 100 real estate professionals.